Sobha Limited Q1 FY27: Real Estate Sales Surge 76% to ₹3,656 Crore
Sobha Limited reported record Q1 FY27 real estate sales of ₹3,656 crore, up 76% YoY. The company sold 2.34 million sq ft across 1,432 homes. Bangalore and NCR led sales with new project launches. Management expects margin expansion in H2 FY27, targeting 17-20% EBITDA by Q4.
The announcement details record-breaking sales figures, significant year-on-year growth, robust project pipeline, and positive financial performance, which are material information for investors and stakeholders, indicating a significant impact on the company's valuation and future prospects.
The company reported record sales, significant year-on-year growth, and strong financial performance, indicating a positive outlook. Management also expressed optimism about future growth and margin expansion.
Sobha Limited announced a landmark first quarter for FY27, achieving its highest ever quarterly real estate sales value of ₹3,656 crore, a significant 76% increase year-on-year. The company sold 2.34 million square feet across 1,432 homes, with an average realization of ₹15,655 per square foot. Bangalore remained the strongest market, contributing ₹2,067 crore (57%) to the quarterly sales, boosted by new launches like Sobha One World and Sacred Grove. The NCR region also recorded its highest ever quarterly sales at approximately ₹1,384 crore, driven by the launch of Sobha Crescent.
During the quarter, Sobha launched three new projects in Bangalore and Gurgaon with a combined saleable area of 6.89 million square feet and a potential sale value of ₹10,000 crore. Project execution remained a core strength, with 677 homes (1.08 million square feet) completed. The company plans to complete 6 to 6.5 million square feet in FY27, a 20% increase from the previous year. The development pipeline includes 17 projects totaling 20.77 million square feet, with plans to launch 9 projects (approximately 8.2 million square feet) in the remaining period of FY27.
Financially, Sobha reported a total income of ₹1,330 crore, a 48% year-on-year growth. The company ended the quarter with a net cash position of approximately ₹659 crore, maintaining low leverage and a borrowing cost of 7.62%. Operational cash inflow was healthy at ₹1,924 crore. The company has a robust revenue yet to be recognized amounting to ₹20,553 crore from existing sales. Management anticipates margin expansion in the second half of FY27, with EBITDA potentially reaching 17% to 20% by Q4, up from the current 9.7%.
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Sobha Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Sobha Limited. Read the original for the full detail.